Some of the affected firms include Berkshire Hathaway, BlackRock and IHC, among others.
However, Blackstone Group, Prologis and others generated significant capital inflows.
Six of the world’s largest
investment companies have seen huge capital outflows year-to-date (YTD) from
their market capitalization as economic uncertainty troubles the industry. As
of March 16, 2023, the leading investment firms accounted for a capital outflow
of $52.55 billion YTD, according to new data from financial publication
FinBold.
Of the six, four are based in
the United States and together account for nearly 80% of the capital outflows,
FinBold said in its report, noting that “the plunge in market cap is a direct
impact of investors' rising level of uncertainty due to persistently high
global inflation, change in monetary policies, and interest rate hikes by
various central banks.”
Largest Investment Firms Lose
Big
Out of the six companies,
Nebraska-based Berkshire Hathaway saw the biggest outflow as $29.12 billion
left the American investment giant. This represents 4.27% of the firm’s current
market capitalization of $652.66 billion.
New York-based global investment
firm BlackRock trailed behind Berkshire Hathaway as $11.52 billion left the
company year-to-date. This stands for 10.82% of the company’s current $94.91
billion market cap.
Coming in with the third largest
loss is International Holding Company (IHC), an Abu Dhabi-based investment company,
which has recorded $8.97 billion in capital outflow since the start of the
year. The market cap of the company, which is one of the Middle East and
Africa's large conglomerates, stands at about $236 billion.
Furthermore, Prosus, one of the
largest technology investors in the world, posted an outflow of $1.64 billion
YTD, coming in fourth. The Amsterdam-based firm currently boasts a market cap
of about $139 billion.
In the fifth position is Crown
Castle, a Houston-based operator of telecommunications networks, which recorded
an outflow of $1.23 billion, bringing its market cap to $57.51 billion. On the
other hand, US banking giant Morgan Stanley, which ranked 6th, posted the least
losses with a capital outflow of $0.07 billion.
Although economic uncertainty contributed majorly to the plunges, the capital outflows for the US investment firms come
at a time the banking industry in the country is grappling with some of its
largest bank failures since the 2008 financial crisis. Four US lenders
collapsed within the span of four days last week.
Blackstone, Prologis and Others
Generate Capital Inflows
Despite the huge volume of
capital outflows, some investment firms generated a significant amount of
inflows. This group was led by Blackstone Group, a New York-based alternative
asset manager, whose market cap shot up to $62.57 billion after attracting $9
billion.
Blackstone Group was trailed
behind by Prologis, a California-based real estate investment trust which
generated an inflow of $6.76 billion during the period. Digital infrastructure
provider Equinix comes next with an inflow of $3.86 billion.
In addition, Swedish investment
firm Investor AB generated an inflow of $1.46 billion with a market cap of
$58.13 billion during the first months of 2023 up until March 16th.
“Looking ahead, the prevailing
level of uncertainty could push investors targeting investment firms to stay on
the sidelines until market conditions improve,” FinBold explained.
Six of the world’s largest
investment companies have seen huge capital outflows year-to-date (YTD) from
their market capitalization as economic uncertainty troubles the industry. As
of March 16, 2023, the leading investment firms accounted for a capital outflow
of $52.55 billion YTD, according to new data from financial publication
FinBold.
Of the six, four are based in
the United States and together account for nearly 80% of the capital outflows,
FinBold said in its report, noting that “the plunge in market cap is a direct
impact of investors' rising level of uncertainty due to persistently high
global inflation, change in monetary policies, and interest rate hikes by
various central banks.”
Largest Investment Firms Lose
Big
Out of the six companies,
Nebraska-based Berkshire Hathaway saw the biggest outflow as $29.12 billion
left the American investment giant. This represents 4.27% of the firm’s current
market capitalization of $652.66 billion.
New York-based global investment
firm BlackRock trailed behind Berkshire Hathaway as $11.52 billion left the
company year-to-date. This stands for 10.82% of the company’s current $94.91
billion market cap.
Coming in with the third largest
loss is International Holding Company (IHC), an Abu Dhabi-based investment company,
which has recorded $8.97 billion in capital outflow since the start of the
year. The market cap of the company, which is one of the Middle East and
Africa's large conglomerates, stands at about $236 billion.
Furthermore, Prosus, one of the
largest technology investors in the world, posted an outflow of $1.64 billion
YTD, coming in fourth. The Amsterdam-based firm currently boasts a market cap
of about $139 billion.
In the fifth position is Crown
Castle, a Houston-based operator of telecommunications networks, which recorded
an outflow of $1.23 billion, bringing its market cap to $57.51 billion. On the
other hand, US banking giant Morgan Stanley, which ranked 6th, posted the least
losses with a capital outflow of $0.07 billion.
Although economic uncertainty contributed majorly to the plunges, the capital outflows for the US investment firms come
at a time the banking industry in the country is grappling with some of its
largest bank failures since the 2008 financial crisis. Four US lenders
collapsed within the span of four days last week.
Blackstone, Prologis and Others
Generate Capital Inflows
Despite the huge volume of
capital outflows, some investment firms generated a significant amount of
inflows. This group was led by Blackstone Group, a New York-based alternative
asset manager, whose market cap shot up to $62.57 billion after attracting $9
billion.
Blackstone Group was trailed
behind by Prologis, a California-based real estate investment trust which
generated an inflow of $6.76 billion during the period. Digital infrastructure
provider Equinix comes next with an inflow of $3.86 billion.
In addition, Swedish investment
firm Investor AB generated an inflow of $1.46 billion with a market cap of
$58.13 billion during the first months of 2023 up until March 16th.
“Looking ahead, the prevailing
level of uncertainty could push investors targeting investment firms to stay on
the sidelines until market conditions improve,” FinBold explained.
Solomon Oladipupo is a journalist and editor from Nigeria that covers the tech, FX, fintech and cryptocurrency industries. He is a former assistant editor at AgroNigeria Magazine where he covered the agribusiness industry. Solomon holds a first-class degree in Journalism & Mass Communication from the University of Lagos where he graduated top of his class.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
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📣 Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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